Five issues all landlords must consider in 2018

2017 saw a number of changes made to regulations governing the private rented sector and a record number of government consultations held in relation to letting in the UK, meaning there is plenty for landlords to consider and act upon in the new year.

Allison Thompson, managing director at property specialist Leaders, says: “From tax relief to energy standards, there is much for landlords to factor in to their calculations for the year ahead.

“Property is still the most attractive and rewarding investment option, but staying on top of changing regulations and acting accordingly will help landlords to stay one step ahead and to realise the maximum potential of their portfolios.”

Leaders has identified five issues all landlords should be aware of and work towards in 2018:

1) Mortgage interest tax relief

Between 2017 and 2020, the amount of mortgage interest landlords can deduct from their rental income before calculating their tax liability is being reduced from 100 per cent to zero. In 2017-18, landlords can claim 75 per cent of this cost at the higher rate. It is crucial all landlords consider these changes and how they will affect profits. Taking expert advice now will pay off in the long run.

2) Minimum energy efficiency standards

From 1st April, privately rented properties must have a minimum rating of E on an Energy Performance Certificate. With very few exceptions, it will be illegal to let a home that has not achieved this and landlords could face prosecution. Taking advantage of voids and lease breaks to upgrade a property’s energy performance is a wise move.

3) Further PRA changes